9911796707
TMI Blog2014 (7) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... t the genuineness of the transaction as set out by the Tribunal. It is only after such enquiry if the Assessing Authority is satisfied that the transaction in question is genuine one, the assessee has paid the money, he has received the goods and necessary entries are made in the books of accounts of the assessee, then merely because of the dealer has not remitted the tax would not enable the Assessing Authority to deny the benefit to the assessee. As the said exercise had not been done, after setting aside the order, the Tribunal was justified in directing the Assessing Authority to undertake that exercise as suggested by the Tribunal. In the facts and circum stances of this case, we are satisfied that the approach of the Tribunal is just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three dealers were existing and doing business at the time the Assessing Authority was concluding the assessment in the assessee s case. Therefore, the Assessing Authority held that these three dealers were bogus dealers and therefore, to that extent, the benefit of input tax deduction was denied to the as sessee. Aggrieved by the said order, the assessee preferred an appeal before the Joint Commissioner of Commercial Taxes, the first appellate authority, who declined to entertain the appeal. Aggrieved by the said order, the assessee preferred an appeal to the Karnataka Appellate Tribunal. 3. The Tribunal, after considering the entire case on merits, was of the view that the Assessing Authority has not conducted necessary investigatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltimately transferred to the Assessing Authority are not forthcoming in the assessment records and there fore, the Assessing Authority did not have the opportunity to have the genuineness verified. Therefore, the Assessing Authority should have properly appreciated the entire material on record and should have established that the selling dealers were really bogus or the assessee was in connivance with the selling dealers to defraud the State of its revenue. The Assessing Authority has not properly appreciated the facts of the case and has not ascertained the genuineness of the tax invoices raised and has not ascertained as to whether the goods stated to have been sold have actually been delivered to the assessee and whether the goods vehic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. It is only after such enquiry if the Assessing Authority is satisfied that the transaction in question is genuine one, the assessee has paid the money, he has received the goods and necessary entries are made in the books of accounts of the assessee, then merely because of the dealer has not remitted the tax would not enable the Assessing Authority to deny the benefit to the assessee. As the said exercise had not been done, after setting aside the order, the Tribunal was justified in directing the Assessing Authority to undertake that exercise as suggested by the Tribunal. In the facts and circum stances of this case, we are satisfied that the approach of the Tribunal is just and proper and is in accordance with law. In that view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
